Borosil Renewables (BORORENEW) Q4 01/02 earnings summary

Executive summary

• FY02 gross sales rose to Rs. 8,648.91 lakh from Rs. 7,819.92 lakh, but operations ended with a net loss of Rs. 96.93 lakh.

• Furnace disruptions, suspended production during plant renovation, and a Rs. 666.83 lakh investment impairment weighed on results.

Financial highlights

• Gross profit after interest, before depreciation and extraordinary items, was Rs. 436.73 lakh vs Rs. 330.22 lakh in FY01.

• PBT was a loss of Rs. 167.47 lakh vs profit of Rs. 11.59 lakh; PAT was a loss of Rs. 96.93 lakh vs profit of Rs. 10.10 lakh.

• Net extraordinary loss was Rs. 214.82 lakh; a Rs. 702.01 lakh fixed-asset sale gain was offset by investment-related losses and impairment.

• FY02 included Rs. 71.22 lakh deferred tax income; EPS was a loss of Rs. 2.83 vs earnings of Rs. 0.30 in FY01.

• No dividend was recommended; closing reserves and surplus were Rs. 4,212.42 lakh vs Rs. 4,890.28 lakh.

Outlook and guidance

• Furnace No. 1 upgrade and expansion plans were being developed with an international designer; funding was being arranged through institutions and banks.

• Scientific and laboratoryware plans included stronger exports, more subcontracting, new product ranges, and action against spurious manufacturers.

• Consumerware plans targeted greater microware share and leadership in drinking glasses, supported by two new ranges in FY03.